Facebook Acquires WhatsApp by Strategy and Compares to Other Tech Acquisitions

A lot of people said about how WhatsApp will save Facebook from losing the international messaging war. It actually, Facebook did a lot of help to Instagram recovered to arise from the spam attack in 2010. Similarly, in the same way you can expect it to do the same for whatsapp. Thousands of extra Facebook engineers with domain expertise should surely get WhatsApp closer to that goal.

Facebook acquired global messaging platform WhatsApp for $12 billion in stock and $4 billion in cash, plus another $3 billion in employee as part of the deal on Wednesday. And also the software isn’t widely used in United States, past few months their service grew to serve 450 million users with just 32 engineers.

Assuming an active user base of 450 million, Facebook Paying $19 billion for 450 million users equates to $42 per user. The following chard created by Statista, this is in comparison to LinkedIn (LNKD), Twitter, and Facebook, which trade at multiples of $84.95, $83.53, and $141.32 respectively.